We held the suspense long enough the while many believed that the Airbus A-380 could potentially see the end of its short lived life, we see Emirates Airline casually announce they have placed an order for 14 new A380’s after talking about simply remodeling a few of their older models.
They do a great job at highlighting the purchase of the 40 A330-900neo and the 30 A350-900 before making any comments about the A380. They understood the pressure behind the price of the Airbus stock and knew that after Qatar pulled back from their order Airbus was going to begin to feel so volatility in their stock price.
We can see right at the start of the day a massive jump up bringing the price up to $110.94 before retracing a bit back after the news down to the current level of about 109.00 bringing 4.43% gains to airbus today. With the new orders in place we can expect to see some growth as this just added over $21 Billion dollars of revenue creating a win-win situation for both Airbus and Emerites. They will be bringing their total count of A380’s up to 123.
Price has been moving up progressively from the start of the year which is natural as the start of the year most often brings new orders and this is where historically the market has seen some expansion. Although with growing pressures internationally we can expect so see price see some resistance here at this level before breaking to higher highs.
The daily chart for Airbus is retracing seeing the signs of rejection already from the new spike so if you are currently trading Airbus do proceed with caution in this price range as volatility is high and with out proper risk management you could potentially see significant loses. Keep you Stop Loss tight to protect your initial investment. Today is the expiration date for February Options so if you are already in profits go ahead and close out your trade to lock in any profits to protect your self from any draw back from the rest of the trading day.
What are your thoughts on how this new order of a total of 84 new aircraft will affect the future price of Airbus. Will it continue to drive price up to all new highs? Will the market correct itself from the surge of price and begin to experience resistance at the $110 price level trading sideways potentially seeing some retracement? Comment Below or Tweet me on StockTwits what you think will happen for the weeks to come with Airbus!
After delay we can see that Airbus will produce the next 14 A380 and then cease any further productions afterwards
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